In 2008 Chuck del Prado was appointed CEO of ASM International NV (AMS:ASM). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Chuck del Prado's Compensation Compare With Similar Sized Companies?
Our data indicates that ASM International NV is worth €4.5b, and total annual CEO compensation was reported as €2.8m for the year to December 2019. We note that's an increase of 24% above last year. While we always look at total compensation first, we note that the salary component is less, at €702k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from €3.6b to €11b, we found the median CEO total compensation was €2.3m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 58% of total compensation represents salary and 42% is other remuneration. Readers will want to know that ASM International pays a modest slice of remuneration through salary, as compared to the wider sector.
So Chuck del Prado is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see a visual representation of the CEO compensation at ASM International, below.
Is ASM International NV Growing?
On average over the last three years, ASM International NV has seen earnings per share (EPS) move in a favourable direction by 11% each year (using a line of best fit). Its revenue is up 57% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has ASM International NV Been A Good Investment?
Boasting a total shareholder return of 102% over three years, ASM International NV has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Chuck del Prado is paid around what is normal for the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! On another note, we've spotted 1 warning sign for ASM International that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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